So you’re thinking of buying a house. Maybe you want it for your own stay, maybe you want to use it as an investment property.
But you don’t know how much the bank is willing to lend to you.
And that’s a problem, because while there are a lot of choices within the property market, you also don’t want to fall in love with a property that is out of your price range. You know how important it is to stay within your budget.
I found the best way to go about this: find out first how much home loan I can get with my salary (*if* I can even get it), AND the banks that are likely to approve my home loan application, BEFORE I even start looking for property.
Find out eligibility first BEFORE look for house
Enter: Hi MORTGAGE’s Home Loan Eligibility tool. It tells you how much home loan you can get from the bank, based on your salary and other factors.
- Normal process: Fall in love with a property -> submit loan application -> maybe approbed, maybe get rejected
- With Hi MORTGAGE ’s Home Loan Eligibility tool: Find out if you’re eligible -> [If yes] Find house -> submit loan application to banks with the highest chances of approval and best rates
Here’s how it works.
How to Use Hi MORTGAGE Home Loan Eligibility tool
Go to https://www.himortgage.asia/. The interface is clean and simple, and the tool is displayed prominently on the main page itself.
Step 1: Enter the amount you want to borrow, and number of years
Step 2: Enter the sector you’re in
Step 3: Depending on your answer, enter your income or salary
Step 4: Enter your current commitments and savings
Step 5: Enter your IC (this is needed for the DSR – Debt Service Ratio check)
Step 6: Find out which bank(s) is likely to approve your home loan application
In the process of doing this Hi MORTGAGE review article, I tested out the platform myself, this is my result. Looks like I have at least 4 banks that I can get a home loan with! You can see that different banks have different maximum loan amounts they can offer, based on their own criteria.
The data is insightful on its own. If I’m ready to start the property-buying purchase, all I have to do is click Proceed and I’ll be connected to a mortgage consultant (it’s like having your own personal banker, said the Hi MORTGAGE team), who will:
- Give me my financial character report (see the example below)
- Advise me further on the next steps, and
- Help me select and compare products.
Hi MORTGAGE’s financial character report will be given to you for FREE upon clicking Proceed. It essentially tells you three things:
1. Your financial character
This tells you how favourable you are in the eyes of bank institutions. If you have a score below 629, you are defined as ‘Fair’ which is deemed as fairly unfavorable by banks. Therefore, you will be facing difficulties to get your loan approved.
If you have scores between 630 to 719, you are defined as ‘Good’ which is deemed as somewhat favourable by banks. But if you score 720 and higher, the world is your oysters. You have the highest chance to get your loans approved.
2. Loan amount eligibility
On this part, it tells you the maximum amount you can borrow from bank institutions to buy a home. The figure is computed based on the amount of income, commitments and savings you put in Hi MORTGAGE’s Home Loan Eligibility tool.
3. Banks comparison
Now here comes the most exciting part: bank comparison. In this section of the report, it tells exactly which banks will most likely approve/reject your home loan application. It also tells you the maximum loan amount you can borrow from them.
Note: The accuracy of this report depends on the accuracy of the data (the amount of your incomes, commitments and savings) you put in Hi MORTGAGE’s Home Loan Eligibility tool. So if you want an accurate report, please be honest to yourself 🙂
Hi MORTGAGE ’s Home Loan Eligibility tool offers up to 25 home loan products from 18 banks, including Conventional and Islamic. If you’re eligible from more than one bank, getting expert advice from a mortgage consultant is definitely recommended, so you can make the best choice possible.
Plus, having access to your own personal mortgage consultant where you can ask anything (let alone online) is a value you cannot get anywhere – except in Hi MORTGAGE. So please take advantage of their tools. Go shop for home loan products first, then only shop for your dream house.
What’s the catch? None, the service is FREE until further notice, so use it while you can. Hi MORTGAGE is paid a commission on successful applications, so there’s no cost to you.
What if you don’t use the tool to find out how much home loan you can get on your salary?
Let’s say you are buying property through the usual route – you found your dream property, then look for ways to finance it. The property is within your price range, or so you thought.
You told the real estate agent to proceed, and they are just as excited for you. The next step, they said, is to prepare the paperwork needed to submit to the bank and secure the home loan.
This is where it usually gets tricky.
Home loan rejection is super common (and there’s a penalty for re-applying)
Over 60% of home loan applications get rejected, and that data is from pre-pandemic times.
What causes the rejection? Maybe you have too much debt, so not many banks are keen to take on the risk. In this case, there is nothing you can do but improve your finances.
However, it could also be the case of applying to the wrong bank. You might choose one particular bank for their (attractive) home loan package, but you may not know banks have customer preferences, too. For example:
- Some banks are friendlier to salaried employers rather than commission earners or self-employed
- Some banks are also friendlier to fishermen/farmers/taxi drivers/micro-entrepreneurs who don’t have monthly payslips.
Some of you may say – so what if one bank rejects your loan? Just apply to a different one.
Unfortunately, there are consequences to a failed attempt. If one bank rejects you, it increases the likelihood of rejection from other banks, too. The common advice is to wait at least 6 months between applications. 6 months!
But that’s not the only reason to avoid applying this way. You might also
Pay more than you should
Imagine getting approved for a home loan – but it’s actually not the best home loan product for you. You actually can get a lower effective profit rate (the Islamic banking term for interest rate) from other banks if you are bothered to check with Hi MORTGAGE’s consultant first.
Without Hi MORTGAGE, it would be a hassle to check and compare 25 home loan products from 18 banks one by one, by yourself. Almost no one does that.
But it’s actually important to compare home loan products. You might get pre-approved by Bank A, B and C. But bank C offers a lower effective profit rate than Bank A and B. You would only know this if you use Hi MORTGAGE and engage with their consultant via WhatsApp.
If you aren’t using Hi MORTGAGE, chances are you will take whatever loan offers that come your way first without ever knowing that it’s actually a little bit more expensive. Comparing and choosing the right home loan can save you thousands of ringgit over the long run!
The smart way to be a property owner
If you’re considering property ownership, go use the Hi Mortgage Home Eligibility tool. Find out first how much loan you can get from the bank and which bank is more likely to approve your loan BEFORE you start the property-searching process, or at least before you or your real estate agent submits the application.
Any questions on Hi Mortgage Home Eligibility tool, or the process? If yes, leave your comments below and they’ll get back to you. For now, feel free to test the tool yourself – find out the price range of properties you can afford and your current DSR health at https://www.himortgage.asia/.